Sri Lanka’s Government is moving ahead with plans to introduce a public-private partnership (PPP) model for Sri Lankan Airlines, Aviation Minister Anura Kuranathilake said.Speaking during a televised discussion, the Minister acknowledged that maintaining the national carrier through taxpayer funds was becoming increasingly unsustainable.

He said the Government is currently required to provide significant financial support to keep the airline operational, revealing that around Rs. 90 billion is expected to be allocated up to 2030 at a rate of nearly Rs. 30 billion annually.

According to the Minister, Sri Lankan Airlines has also requested an additional Rs. 10 billion to continue operations.“This cannot continue forever. It is unfair because even people who have never seen an aircraft are contributing through their taxes to maintain the airline,” he said.The Minister stated that the Government has now decided to pursue a public-private partnership model and is in the process of preparing investment proposals to invite investors.He said an institution would be tasked with handling the investor process and expressed confidence that investments could be secured within this year.However, the Minister clarified that the Government does not intend to fully privatize the airline.He noted that maintaining some level of State involvement in a national carrier remains important, particularly during emergencies.

As examples, he cited SriLankan Airlines’ role in bringing home Sri Lankan students stranded in China during the COVID-19 pandemic and arranging special flights for Sri Lankan schoolchildren stranded in India following a highway accident.“We believe there should be at least some level of Government involvement in a national airline for emergency situations,” he said.

The Minister added that the Government hopes to retain existing State assets within the airline while bringing in private investment under a joint partnership structure.